WASTE is one of the biggest opportunities for improved performance in the modern SOCIO-ENVIRO-ECONOMIC system. Waste does not have much of a cost in conventional accounting, but the true cost of waste taking into account the impact on the environment, the huge. The conventional incentives for better performance encourage consumption, but only measure this at the point of sale ... the waste all the way through the product life cycle are ignored. Cleaning up the processes so that there is no production of waste should be a priority ... a getting consumers not to waste in another thing that needs to be done. Waste is causing untold pollution on land, in rivers and now also in the oceans. This is not the way man built systems should be functioning, and it must be fixed.

1. MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-p3-06-WASTE-150420.odp Peter Burgess (c) All rights reserved
MDIA
POST USE
WASTE CHAIN

2. MULTI DIMENSION IMPACT ACCOUNTING
WORK-IN-PROGRESS.
SLIDESET STILL IN DEVELOPMENT.
UPDATES WILL BE POSTED OVER
THE NEXT SEVERAL WEEKS

3. WASTE
● Waste happens because the system is
not working, e.g. food spoilage;
● Waste happens because people are
thoughtless and lazy;
● Waste happens because production
process technology results in waste;
● Waste happens because companies
care about costs but not much about
impact on the environment.
MULTI DIMENSION IMPACT ACCOUNTING

4. MULTI DIMENSION IMPACT ACCOUNTING
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BOP EOP
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Financial
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Human
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Man Built
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Natural
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Financial
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Land Fill

5. MULTI DIMENSION IMPACT ACCOUNTING
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Food Waste

6. MULTI DIMENSION IMPACT ACCOUNTING
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Electronic Waste

7. MULTI DIMENSION IMPACT ACCOUNTING
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Financial
Capital
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Capital
Man Built
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Natural
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Financial
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Plastic bottles

8. MULTI DIMENSION IMPACT ACCOUNTING
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BOP EOP
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Financial
Capital
Human
Capital
Man Built
Capital
Natural
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Plastic bottles

9. MULTI DIMENSION IMPACT ACCOUNTING
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BOP EOP
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Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
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Financial
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Human
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Natural
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Plastic waste

10. MULTI DIMENSION IMPACT ACCOUNTING
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BOP EOP
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Financial
Capital
Human
Capital
Man Built
Capital
Natural
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Human
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Beach waste

11. COMPANIES MAKE WASTE
● By how their PRODUCTS are designed;
● By how their marketing and advertising
operates to get people to buy more than
they need;
● By how their performance MIS puts a
big emphasis on PROFIT without
considering PEOPLE and PLANET
MULTI DIMENSION IMPACT ACCOUNTING

12. PROCESSES produce WASTE
● The processes that transform inputs
into
products produce more or less waste;
● The use of most energy types results
● in various forms of waste pollution.
MULTI DIMENSION IMPACT ACCOUNTING

13. PRODUCT results in WASTE
● The design of a PRODUCT has a role
in reducing waste;
● Decisions about manufacturing
PROCESS and SUPPLY CHAIN
have a role in waste mitigation;
● The way PEOPLE use PRODUCT has
a role in waste;
● The way PEOPLE discard PRODUCT
and PACKAGING and the manner of
recycling impact waste.
MULTI DIMENSION IMPACT ACCOUNTING

14. PEOPLE MAKE WASTE
● By how they buy PRODUCTS without
any reference to the related waste;
● By how they use PRODUCTS with little
consideration of the associated waste;
● By how they discard PRODUCTS after
use;
● By buying too much;
● By throwing away half used products;
● By sloppy recycling or none at all.
MULTI DIMENSION IMPACT ACCOUNTING

15. SYSTEMIC ISSUES
● Conventional metrics ignore all costs
of waste;
● There are few incentives to reduce
waste;
● Recycling is usually inconvenient;
● More sales produces more PROFIT,
while more sales producing more
waste is ignored.
MULTI DIMENSION IMPACT ACCOUNTING

16. ATMOSPHERIC WASTES
The atmosphere is a convenient
dumping ground. There are many
different components:
● Greenhouse gases;
● Particulates;
● Sulphur dioxide and acid rain;
● Nitrous oxides and automobile pollution;
● Natural atmospheric pollution (e.g.volcanoes);
● Aerosol propellants.
MULTI DIMENSION IMPACT ACCOUNTING

17. GREENHOUSE GASES
The Kyoto Protocol cover emissions of
these six main greenhouse gases:
● Carbon dioxide (CO2);
● Methane (CH4);
● Nitrous oxide (N2O);
● Hydrofluorocarbons (HFCs);
● Perfluorocarbons (PFCs); and
● Sulphur hexafluoride (SF6).
SHAME: The US did not sign the accord and
Canada subsequently withdrew its agreement
MULTI DIMENSION IMPACT ACCOUNTING

18. WASTEWATER
● Conventional metrics ignore all costs
of waste;
●
MULTI DIMENSION IMPACT ACCOUNTING

19. SOLID WASTE
● Conventional metrics ignore all costs
of waste;
●
MULTI DIMENSION IMPACT ACCOUNTING

20. WASTE in the ENERGY CYCLE
● Air pollution has a bad impact on health
and wellness, e.g.;
● Urban smog containing particulates and noxious
compounds creates respiratory problems;
● Rural cooking on open fires.
● Water pollution … bad impact;
● Polluted water carries many water borne
diseases including cholera, dysentery and
others;
● Solid Waste;
● Dangerous toxins in solid waste migrate into the
supply chain for food, potable water, etc.
MULTI DIMENSION IMPACT ACCOUNTING

21. WASTE in the FOOD CYCLE
● Air pollution has a bad impact on health
and wellness, e.g.;
● Urban smog containing particulates and noxious
compounds creates respiratory problems;
● Rural cooking on open fires.
● Water pollution … bad impact;
● Polluted water carries many water borne
diseases including cholera, dysentery and
others;
● Solid Waste;
● Dangerous toxins in solid waste migrate into the
supply chain for food, potable water, etc.
MULTI DIMENSION IMPACT ACCOUNTING

22. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
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Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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FINANCIAL ACCOUNTS
DESCRIBE ECONOMIC
ACTIVITY IN FINANCIAL
OR MONEY TERMS
WHILE COMPLETELY
IGNORING IMPACT
ON EVERYTHING ELSE

23. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
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Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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Financial
Capital
Human
Capital
Man Built
Structures
& Systems
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Capital
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Financial Accounts describe Economic Activity
Financial Costs
Financial Profit
Financial Revenues
Financial
Balance
Sheet
BOP
Financial
Balance
Sheet
EOP

24. MULTI DIMENSION IMPACT ACCOUNTING
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Financial Accounts describe Economic ActivityBOP EOP
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Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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FINANCIAL
P&L ACCOUNT
REVENUES
Products Sold X Price
Products Bought X Price
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
PROFIT
COSTS

25. MULTI DIMENSION IMPACT ACCOUNTING
Sun
ACCOUNTING FOR EVERYTHINGBOP EOP
REVENUES
Products Sold X Price
VALUE to buyer
Equals
HUMAN CAPITAL ADD
Wages and benefits
What value to
employee?
Pro-good expenditures
What value to society?
Taxation
What value to society?
For products and
energy bought
and this process
Free use of the
commons and
public services
& infrastructure
Degradation
of land
Water scarcity
and degradation
Air pollution:
Impact on people
Air pollution:
Impact on climate
Air pollution:
Impact on people
Solid waste
Resource
depletion
Environmental
Degradation
POSITIVE
IMPACT NOT
ACCOUNTED
FOR
Negative
impact
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun Sun
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
FINANCIAL
P&L ACCOUNT
REVENUES
Products Sold X Price
Products Bought X Price
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
PROFIT
COSTS

26. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
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Financial
Capital
Human
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Recycling

27. SUPPLY CHAIN / LIFE CYCLE
● Waste happens at every stage of the
supply chain
● Waste happens in every production
process;
● Waste happens during the use of a
product;
● Waste happens when a product is
thrown away.
MULTI DIMENSION IMPACT ACCOUNTING

28. MULTI DIMENSION IMPACT ACCOUNTING
PRODUCT … the SUPPLY CHAIN
Zero to start
Costs this stage
Profit this stage
Price this stage
Zero to start
Costs this stage
Profit this stage
Price Stage 1
FINANCIAL ACCOUNTS EACH STEP OF THE SUPPLY CHAIN
Cost =
Price stage 1
Costs Stage 2
Profit Stage 2
Cum Costs
Cum Profit
Price Stage 2
Cost =
Price stage 2
Costs Stage 3
Profit Stage 3
Cum Costs
Cum Profit
Price Stage 3
Cost =
Price stage 3
Costs Stage 4
Profit Stage 4
Cum Costs
Cum Profit
Price Stage 4
Cost =
Price stage 4
Costs Stage 5
Profit Stage 5
Cum Costs
Cum Profit
Price Stage 5
Cost =
Price stage 4
Costs Stage 5
Profit Stage 5
Cum Costs
Cum Profit
Price Stage 5
ETC...

29. MULTI DIMENSION IMPACT ACCOUNTING
MBSS
Natural
Capital
Human
Capital
PRODUCT … the SUPPLY CHAIN
ADJUSTMENTS TO REFLECT IMPACT (EXTERNALITIES)
Zero to start
Costs this stage
Profit this stage
Price this stage
Zero to start
Costs this stage
Profit this stage
Price Stage 1
FINANCIAL ACCOUNTS EACH STEP OF THE SUPPLY CHAIN
Cost =
Price stage 1
Costs Stage 2
Profit Stage 2
Impact
Stage 1
Impact
Stage 1
Impact
Stage 1
Cum Costs
Cum Profit
Price Stage 2
Impact
Stage 2
Impact
Stage 2
Impact
Stage 2
Cum
Impact
Cum
Impact
Cum
Impact
Cost =
Price stage 2
Costs Stage 3
Profit Stage 3
Cum Costs
Cum Profit
Price Stage 3
Impact
Stage 3
Impact
Stage 3
Impact
Stage 3
Cum
Impact
Cum
Impact
Cum
Impact
Financial
Dimension

30. Moving forward … Request
for collaboration
Money is part of a complex socio-enviro-economic
system. While it works … it does not work as well as it
should, nor as well as it could. The work of MDIA is to
enable this complex system to work better.
MDIA needs to be a team effort. Join in and help to
make the world a better place. Please get in touch.
Peter Burgess … peterbnyc@gmail.com
MULTI DIMENSION IMPACT ACCOUNTING